What is construction automation? A guide to the future of construction

Cost overruns are a constant threat to profitability in construction, pressuring CFOs to forecast and manage budgets with greater precision. New automation tools address this directly. From autonomous equipment to AI-driven software, these systems improve cost control and help firms protect margins.

In a recent QuickBooks survey, 89% of respondents agreed that AI is key to business success. For construction finance teams, that moves AI from optional to operational.

This article outlines what construction leaders should know about modern automation and AI—common tools, benefits and use cases, and innovations shaping the industry’s future.

Jump to:

• What is construction automation?
• Benefits of construction automation
• 10 types of construction automation
• Real-world construction automation use cases
• Future of construction automation
• Boost productivity and enhance profitability

What is construction automation?

Construction automation is the use of advanced technology to complete construction-related tasks with minimal human intervention. Examples include artificial intelligence (AI), robotic equipment, internet-connected sensors, and 3D printing.

Companies are adopting these tools to reduce project delays, improve precision, and manage costs more effectively. By automating key workflows, firms can complete projects faster, maintain higher quality standards, and control overhead without increasing labor spend.

For CFOs, automation also provides better visibility into cost drivers and helps forecast more accurately across complex projects.

Should your business invest in construction automation?

If your business has the capital, investing in construction automation can be a powerful strategic move. You could significantly increase your production capacity, speed, and quality while reducing your future labor costs.

With construction material costs up roughly 44% since 2020 and the industry facing a shortfall of nearly 500,000 workers in 2025, automation offers a compelling solution for those who may otherwise struggle to stay profitable.

Benefits of construction automation

Automation in construction can improve efficiency, enhance safety, and reduce costs across project operations. Below are some of the most impactful benefits for modern construction firms.

Increased efficiency

One immediate benefit of construction automation is faster project completion. Machines handle repetitive tasks faster than human workers and can operate around the clock. This compresses timelines and increases overall business efficiency.

Automated systems also generate large volumes of measurable data. Managers can analyze that information to identify bottlenecks and allocate resources more effectively.

According to Deloitte and Autodesk’s State of Digital Adoption in the Construction 2025 report, businesses that adopt more technologies are more likely to finish projects on time. The study found that each additional technology a company uses corresponds to a 0.6-percentage-point increase in its on-time project completion rate.

Enhanced safety

The construction industry sees more workplace deaths than any other, with 1,075 fatal incidents in 2023 alone. Unfortunately, workers are often at risk of slipping, falling, or having other accidents that can result in serious injury when on job sites.

However, automation is a great way to reduce their exposure to hazardous situations. For example, demolition crews can use semi-automated equipment and remote-operated machines to do their work at a distance, keeping them safely out of harm’s way.

Even when workers have to engage in dangerous tasks directly, tools like drones and advanced sensors can monitor the environment in real time. This allows them to detect potential threats before they become a problem.

Improved precision and quality

Robots and other automated construction tools aren’t just faster than human workers. They’re also more consistent, carrying out their tasks with a reliable precision that’s tough for traditional labor forces to match.

This accuracy reduces construction errors and increases the likelihood that projects meet client expectations. By doing things right the first time, firms can minimize costly rework and schedule delays.

As your operations become more precise, estimating the amount of materials you need for projects also gets easier. That minimizes your chances of over-ordering and wasting resources, as well as facing shortfalls that might send you scrambling for last-minute supplies.

Cost savings

Automation and robotics in construction often generate cost savings that can help offset the initial investment. Most notably, they reduce material and labor costs while extending your operating hours.

According to McKinsey & Company’s *State of AI 2024* report, top-performing companies report efficiency gains of 15% or more in operations and supply chain.

Automation also delivers indirect savings. Fewer accidents can lower insurance premiums and reduce project delays, while greater machine precision minimizes scrap material and disposal costs.

Over time, automated equipment can also lower maintenance costs. Their built-in diagnostics and predictive monitoring systems can help you identify and address issues before they become costly to repair.

24/7 operation

Unlike human workers, automated systems can operate continuously. They don’t need breaks during the workday, sleep at night, or time off for weekends or holidays. They can even press on through adverse weather conditions that might otherwise force a site shutdown.

In addition, automated systems never suffer from fatigue. Pushing human teams too hard often backfires, but machines can maintain a high level of performance at all times.

As a result of this nonstop operation, you can:

• Complete projects faster
• Take projects on shorter notice
• Meet tighter deadlines
• Increase your operation’s output and revenue potential

Better resource management

Automated construction systems typically have features that provide real-time insights into project performance. For example, you can often track ongoing job progress, materials usage, or equipment efficiency.

This information can be invaluable to project managers. It allows them to make data-driven adjustments to the allocation of labor, budget, and materials on the fly, minimizing bottlenecks and downtime.

For example, sensors might reveal that a machine needs maintenance, causing errors and wasting materials. Managers could redirect project funds to purchase a replacement before the equipment breaks down, avoiding delays and reducing inventory waste.

Even without embedded sensors and smart construction automation, you can track project profitability using Intuit Enterprise Suite. The platform includes AI-driven profitability monitoring, mobile time tracking, and root-cause analysis features.

Data collection and analysis

As we’ve established, automation systems often include sensors, drones, and Internet of Things (IoT) devices that generate vast amounts of data. However, this information has use cases far beyond resource allocation.

For example, you could feed the data into AI and machine learning algorithms. These can spot patterns, predict potential issues, and suggest actionable improvements.

This data can also enhance your financial management and construction accounting practices. For instance, it often streamlines the creation of project budgets, forecasts, and financial statements, and makes them more accurate.

Labor shortage mitigation

The construction industry has been facing labor shortages for years, and that seems unlikely to change anytime soon. Fortunately, automation offers a practical and scalable way to address the challenge.

Not only can it ease the burden on overtaxed workforces—helping maintain productivity and quality during labor scarcities—but it also frees your human workers to focus on more complex, value-added activities.

Sustainability

Sustainability is a growing priority for construction companies. Roughly 62% of industry professionals report that whether a supplier prioritizes sustainability is a key consideration in their selection process.

Fortunately, in addition to its many other benefits, automation is one of the most effective ways to create a more eco-friendly construction business.

For example, mechanically optimized material cutting reduces waste and excess scrap. Similarly, more precise construction techniques improve energy efficiency and lead to smaller carbon footprints.

If environmentally responsible building is a priority—whether for personal reasons or to impress eco-conscious clients—investing in automation is a strong way to demonstrate your commitment to sustainability.

10 types of construction automation

Now that we’ve established the benefits of construction automation, let’s explore 10 examples of automation in construction to consider incorporating into your operations.

On-site construction automation

On-site construction automation involves using automated technologies directly on the job site. Typically, the systems complete time-consuming, physically demanding, or potentially dangerous tasks.

Common examples include monitoring sensors, concrete mixers, and robotic welders. These systems reduce the need for manual labor, resulting in lower costs, improved safety, and increased productivity.

Autonomous and semi-autonomous construction equipment

Autonomous and semi-autonomous construction equipment refers to vehicles and machines that can function with minimal human intervention. They often use sensors, GPS, and AI for navigation and task execution.

Some examples include self-driving compactors, automated cranes, and robotic demolition machines.

Robotic automation

Construction robots are machines programmed to handle specific duties, especially repetitive and simplistic ones. For example, that may include bricklaying, tile setting, or drywall installation.

These robots often work best in a supplementary role and can precisely handle a project’s more straightforward aspects. Plus, they increase productivity and safety, freeing humans to focus on more complex work.

3D printing

Also known as additive manufacturing, 3D printing is an innovative construction technology trend that creates complex structures layer by layer from a digital model, often using specialized materials.

It allows you to create customized building components with minimal manual labor. This can streamline the assembly of even large-scale buildings and reduce waste. A 3D printer uses exactly the amount of materials necessary to complete each job.

Drones

Construction drones are unmanned aerial vehicles equipped with high-resolution cameras and powerful sensors, such as topographic mapping and thermal imaging tools.

These features allow drones to monitor entire job sites in real time, capturing visual data on project progress, material levels, and safety. Project managers can analyze this data to make better-informed decisions.

Prefabrication and modular construction

Prefabrication and modular construction involve building components or structures in a separate factory. These controlled environments leverage automation for greater precision, waste reduction, and faster construction.

Once built, workers can transport these elements to the job site and assemble them there. For example, common prefabricated elements include wall panels, staircases, and bathroom or kitchen pods.

Building Information Modeling (BIM)

Building Information Modeling (BIM) is the process of creating comprehensive, 3D digital representations of construction projects. It facilitates collaboration between architects, engineers, contractors, and other stakeholders during design, planning, and construction.

For example, BIM helps identify potential design conflicts, such as HVAC ductwork running through a load-bearing steel beam. By catching these issues early, you can avoid costly reworks.

Artificial intelligence and machine learning

AI and machine learning can analyze vast amounts of data—such as from on-site sensors, equipment logs, and scheduling tools—to identify patterns, optimize scheduling, and predict issues early.

For example, some potential use cases include:

• Monitoring equipment performance to predict when it might fail or require maintenance
• Tracking energy consumption of IoT devices and switching systems off when they’re left idling
• Flagging unsafe behaviors like workers entering unsafe areas without proper protective equipment

Automated monitoring systems

Automated monitoring systems can survey job sites and track aspects like environmental conditions, structural integrity, and worker activity in real time. This allows them to detect potential hazards faster than humans and alert managers when risk management is necessary to preserve safety.

For example, vibration or acoustic sensors can detect signs of structural stress in concrete, and wearable devices can monitor worker vitals and alert supervisors to signs of overexertion.

Virtual and augmented reality (VR/AR)

Virtual reality (VR) technology can create immersive 3D environments that facilitate exploration and collaboration between designers and engineers, especially during the project planning phase.

Meanwhile, augmented reality (AR) technology can overlay digital information onto the real world, providing real-time guidance during complex construction tasks.

For example, construction managers can use AR headsets to project electrical blueprints directly onto a wall, ensuring they install the components exactly where they belong.

Real-world construction automation use cases

Previously, we explored some of the most powerful types of modern construction automation. Next, let’s look at some specific applications to help you understand how you might use them in practice.

Bricklaying robots

Bricklaying robots have robotic arms, computer vision, and laser scanning capabilities that allow them to lay bricks with far greater speed and precision than humans.

Concrete 3D printing

Concrete 3D printing technology can create entire concrete structures from digital models. This can significantly reduce build times, labor costs, and material waste due to errors, especially when manufacturing complex shapes like curved facades.

Drones for site inspection

Construction drones can automatically capture aerial images and video footage of work sites, tracking progress and flagging hazards. This provides managers with a full view of the job site remotely, saving time and improving worker safety.

Autonomous excavators

Autonomous excavators use sensors, GPS, and various algorithms to dig trenches, move earth, and grade surfaces according to site plans. They operate with minimal human involvement, adjusting to real-time environmental conditions and obstacles.

This can significantly accelerate site preparation, especially since these machines can operate continuously without experiencing fatigue.

Prefabrication and modular construction

Prefabrication and modular construction involve building components off-site in controlled factories and transporting them to the job site for assembly. For example, prefabricating bathroom sets is common when building apartment complexes since it allows for streamlined installation.

AI for project management

AI platforms can gather and analyze data from multiple sources, such as job-site cameras, wearable devices, and inventory records. This makes them highly effective in various aspects of project management.

For example, that includes monitoring adherence to safety protocols, tracking material usage, and identifying gaps between actual progress and planned project timelines.

Self-healing materials

It may sound like something out of a comic book, but self-healing building materials can automatically repair minor damage to structures, extending their lifespans and reducing maintenance costs.

For example, researchers have begun to embed bacteria-filled microcapsules in concrete bridge elements. When exposed to water and air, the bacteria produce limestone that can seal small cracks.

Future of construction automation

As far as automation in construction has come, the future will likely bring even more powerful advancements. For example, some of the technological developments you might be able to expect include:

• Robots may become increasingly sophisticated, until they can navigate dynamic, multifaceted tasks with minimal human oversight.
• Sensors and AI systems could grow more powerful, increasing both data quality and analytical capabilities.
• Self-healing materials may become more effective and cheaper to produce, greatly reducing the need for repairs and maintenance.

These automated solutions will likely also integrate with other emerging technologies, further enhancing their capabilities. For instance, high-speed data transfer networks could streamline communication between IoT devices on job sites.

Meanwhile, blockchain could ensure supply chain transparency, enforcing smart contracts that automatically release payments or reorder materials when certain conditions are met.

Ultimately, these combined innovations will result in more resilient, sustainable, and cost-effective structures, as well as an increasingly automated construction industry.

Boost productivity and enhance profitability

Automation in construction is helping firms improve efficiency, safety, and productivity. Some of the most powerful tools include 3D printing, autonomous machines, and augmented reality.

Automation can also help streamline your financial management, improving productivity and profitability. For instance, the Intuit Enterprise Suite can accelerate your cash inflows with construction-specific billing templates, plus automatic invoice approvals and reminders.